IDEAS home Printed from https://ideas.repec.org/a/ags/aolpei/348965.html
   My bibliography  Save this article

A Crude Palm Oil Industry Concentration and Influencing Factors: A Case Study of Indonesia as the World's Largest Producer

Author

Listed:
  • Hidayat, Ariodillah
  • Robiani, Bernadette
  • Marwa, Taufiq
  • Suhel, Suhel
  • Susetyo, Didik
  • Mukhlis, Mukhlis

Abstract

The Crude Palm Oil (CPO) industry is one of the plantation commodities that has a strategic role in Indonesia's economic development. The number of companies and CPO production is always increasing, but the concentration of the industry that always decreases every year makes it important to analyze the factors that affect the concentration of the CPO industry in Indonesia. The data period used in this study was from 2001 to 2020. In this study, data sources were obtained from the Central Bureau of Statistics (BPS) Indonesia, Word Bank, and UN Comtrade. The data analysis method used is regression analysis of the Error Correction Model (ECM). The results showed that technical efficiency has a negative and significant relationship both in the long and short term to the concentration of the CPO industry. Competitiveness in the long term has a positive and significant relationship, while in the short term it is negative but not significant to the concentration of the Indonesian CPO industry. In the long run, the relationship between RSPO and Indonesia's CPO industry concentration tends to be negative but not significant, while in the short term it shows a significant influence. World CPO prices, both long-term and short-term, provide a positive and significant correlation to the concentration of the Indonesian CPO Industry. Indonesia's CPO exports in the long and short term have a negative and significant effect on the concentration of the Indonesian CPO industry.

Suggested Citation

  • Hidayat, Ariodillah & Robiani, Bernadette & Marwa, Taufiq & Suhel, Suhel & Susetyo, Didik & Mukhlis, Mukhlis, 2024. "A Crude Palm Oil Industry Concentration and Influencing Factors: A Case Study of Indonesia as the World's Largest Producer," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 16(1), March.
    • Handle: RePEc:ags:aolpei:348965
    DOI: 10.22004/ag.econ.348965
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/348965/files/606_agris-on-line-1-2024-hidayat-robiani-marwa-suhel-susetyo-mukhlis.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.348965?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aolpei:348965. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/fevszcz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.